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The Law Commission-Bangladesh has taken a move to establish commercial courts aiming to attract foreign direct investment (FDI) for resolving disputes on trade, commerce and banking promptly.
This was disclosed at a meeting between high-ups of Bangladesh Bank (BB) and Law Commission-Bangladesh, held at the central bank headquarters in the city Monday with BB Governor Fazle Kabir in the chair.
The Commission has also prepared a draft amendment on the existing Arbitration Act, 2001 with fixing timeframe for dispute resolution within one year and fixation of fee.
The Commission has taken the moves in line with a proposal of Bangladesh Investment Development Authority (BIDA) to facilitate FDI flow in Bangladesh, according to officials.
Former Chief Justice ABM Khairul Haque, chairman of the Law Commission -Bangladesh, Justice ATM Fazle Kabir, commissioner and Fowzul Azim, chief research officer of the Commission attended the meeting.
Among others, Advisors of the BB Allah Malik Kazemi and SK Sur Chowdhury, Deputy Governor of the central bank SM Moniruzzaman and Chief Economist of the BB Dr. Faisal Ahmed attended the meeting.
"The commercial court is a new concept for Bangladesh to facilitate investment particularly FDI flow," a senior official of the Commission told the FE after the meeting.
India established commercial courts in 2015 to facilitate FDI flow, the official explained. He also said the Commission is now working on the issue. "It will be a Fast Track court."
The proposed commercial court will deal with commercial issues including foreign trade, banking, insurance and commodities to settle disputes as early as possible, officials from both the BB and Commission told the FE.
They also said the meeting also discussed different issues including functioning of money loan courts, strengthening recovery of non-performing loans and credit information bureau (CIB)-related matters.
The CIB was set up on August 18, 1992 in the central bank aiming to improve credit risks and reduce the extent of default loans.
The Commission chairman is expected to discuss about the proposed commercial court, amendment of the Arbitration Act and other issues related to banking business with the managing directors and chief executive officers of all scheduled banks after the Eid-ul-Fitr festival.
"We may organise a special meeting on the issues after the Eid festival," a senior BB official told the FE without elaborating.